The new rules of KOL engagement in China

This is the second article in a two-part series examining China’s influencer marketing ecosystem in 2025. Part I explored how economic pressures are reshaping KOL partnerships and the rise of KOCs and KOEs. This installment delves deeper into the specific challenges brands face and emerging trends that will define successful influencer strategies moving forward. While influencer marketing remains a powerful tool in China, the landscape in 2025 is fraught with significant challenges that require careful navigation. These challenges stem from economic pressures, shifting consumer behavior, and an increasingly cautious regulatory environment. Below are the three main hurdles brands and influencers face this year: 1. A slow market and high influencer costs China’s sluggish economy is making it harder for brands and influencers to find a middle ground. On one hand, brands are tightening their budgets and seeking performance-based partnerships; on the other, influencer fees remain high, even as sales decline. This mismatch creates tension, as influencers struggle to sustain their operations under fee-plus-commission models, particularly when sales are slow. Finding cost-effective solutions that deliver results is more critical than ever, but also more elusive. 2. Changing consumer sentiment and tight budgets Chinese consumers are becoming more discerning but also more budget-conscious. Post-pandemic economic realities mean that consumers are prioritizing value for money — seeking discounts, deals, and affordable luxury. While they still demand high-quality products and excellent service, they are increasingly hesitant to make purchases unless the price is right. For brands, the challenge lies in balancing premium branding with affordability, which often puts pressure on margins and marketing tactics. 3. Cautious platforms and self-censorship China’s regulatory landscape continues to evolve, with stricter oversight of social media content. To avoid potential regulatory and PR crises, platforms and brands are engaging in self-censorship, resulting in content that is often safe, neutral, and undifferentiated. This cautious approach makes it harder for brands to stand out in a crowded marketplace, especially since bold and creative campaigns are now seen as higher-risk. For brands, the challenge lies in crafting campaigns that are both engaging and compliant, without losing their unique voice. These challenges underscore the need for brands to adopt more nuanced, strategic approaches to influencer marketing. By carefully selecting the right KOLs, leveraging cost-effective KOCs, and navigating regulatory sensitivities, brands can overcome these hurdles while still connecting meaningfully with Chinese consumers. The future of influencer marketing in China As the influencer marketing landscape evolves, new trends are reshaping the industry: 1. The emergence of COLs Cultural Opinion Leaders (COLs) are gaining traction as influencers who champion Chinese culture and values. These Gen Z influencers often favor domestic brands or foreign brands that authentically embrace Chinese traditions. 2. AI-driven personalization Artificial intelligence is enabling hyper-personalized marketing strategies, allowing brands to tailor influencer campaigns to specific audience segments. 3. Interactive livestreaming Livestreaming continues to dominate as a powerful tool for engaging consumers in real time. Further personalisation with tailored AI streamers and content, live polls, games and instant purchasing options, to enhance the shopping experience are coming. Final thoughts: Mastering the balance In 2025, succeeding in China’s influencer marketing landscape requires a strategic blend of creativity, data-driven insights, and cultural sensitivity. By mastering the balance between KOLs and KOCs, leveraging multi-platform campaigns, and embracing authenticity, brands can unlock the full potential of China’s dynamic digital ecosystem. As the world’s largest and most sophisticated influencer market, China offers endless opportunities for brands willing to navigate its complexities. The key is to stay agile, informed, and connected with the evolving preferences of Chinese consumers.

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The new rules of KOL engagement in China